Schedule K-1 and K-3 What do I do if Schedule K-3 is not released before tax deadline

[umarrehman]

I have following information on my Schedule K-1.

Can you please help and let me know if I need to file Form 8990 (also Turbo Tax 2024 does not support Form 8990)

1. H1 "Domestic Partner" is checked
2. Box 1 "Oridinary business income (loss) = 276
3. Box 5 "Interest Income" = 4
4. Box 10 "Net section 1231 gain (loss) " = (125)
5. Box 11 "Other income (loss) " code S* = (160)
6. Box 13 "Other deductions: code A = 0 and code K = 39
7. Box 16 " Schedule K-3 is attached if checked" = checkbox is Checked
8. Box 17 "Alternative minimum tax (AMT) items" code A* = 4
9. Bix 18 "Tax-exempt income and nondeductible expenses" code C = 9
10. Box 19 "Distributions" code A = 0
11. Box 20 "Other information" code V = 276

Thanks,

[PatriciaV]

It depends. If you believe Schedule K-3 will report sufficient income to affect your taxable income for the year, you may choose to request an extension of time to file. But if you believe the information from Schedule 3 won't apply to you or won't significantly change your taxable income, you may choose to file your return now and amend your return if necessary when the forms arrive.

In most cases, the foreign income reported on Schedule K-3 is either already reported on Schedule K-1 or only applies to partners with other foreign income and/or assets.

If you chose to file now, uncheck Box 14/16 from Schedule K-1 to clear any federal review issues in TurboTax.

The instructions in TurboTax for a Form 1065 Schedule K-1 box 13 code K:

"This income, deduction, credit, or other item occurs infrequently and is not supported by the program. You must enter this income, deduction, credit, or other item directly on the applicable form or schedule based on the information that was supplied with the Schedule K-1."

Per the IRS Instructions for Form 1065 Schedule K-2, Box 20 Code V, the information reported here applies to a partner that is a tax-exempt organization. In most cases, this does not apply to an individual taxpayer. You may omit Code V from your K-1 entries for Box 20.

Form 8990 is not supported by TurboTax for Form 1040 tax returns. If you want to track your excess business interest, you will need to manually prepare that form, and include it with the return that you print and mail. Click here for IRS form and instructions for Form 8990. For most individual taxpayers, this form is optional.